About Universal Credit Card Rewards

With the growing number of online retailers and the constant presence of credit card terminals, making a purchase using a credit card has become second nature for most. However did you know that some credit cards offer a universal rewards program for card holders? From bank credit cards to retail credit cards, a lot of credit card companies now offer greater rewards, bonuses and points as part of a universal rewards program.

Features

A universal credit card allows a card holder to earn points and then redeem those points for a variety of reward options and bonuses. From bonuses such as hotel and travel discounts, cash points that allow the card holder to earn a dollar value for every dollar he spends, air and travel discounts or tickets, and other bonuses such as clothing, retail discounts, and sporting tickets, the universal credit card reward program has many options for its credit card holders. Rewards vary based on the number of points earned; each transaction earns points (see Resources below).
The objective is to encourage the card holder to use his card as often as possible. In fact, many card holders are sold on the idea that common purchases like filling up at the pump can earn points toward an end of year vacation or household wares.
Card holders can take advantage of these bonuses by charging large expenditures to their universal credit card. For example, it would be wise to charge a furniture item or airfare ticket as these items would allow the card holder to "rack up" a large number of percentage points with just one purchase. If a card offers 3 points for every $1 dollar spent, then a large sofa retailing at $300 would allow the card holder to earn 900 points.

Considerations

Most universal credit cards do not require an anual fee. However, the card holder will have to see the terms and conditions for a complete list fees. APR vary by credit card but can range between 0 to 18.9 percent.
Every reward program is different. For example, the West Ham United Rewards Credit Card (with the Visa logo) offers 1 point for every $1 spent, MBNA Europe and Visa Card benefits, West Ham club contributions with each purchase and theft protection. The Nectar Credit Card from American Express offers 4 points for every $1 spent (when used at participating sponsors), 1 point for every $1 spent at all other locations, 5,000 bonus points (if the applicant adds $200 to the card within the first 3 months) and double points for the first 3 months. There is no annual fee for either credit card.

Geography

Some credit cards offer discounts and rewards specifically for frequent travel. For example, the MBNA Rewards American Express credit card gives card holders VIP travel services and other exclusive cardmember discounts that include Habitat, MacDonald Hotels and Resorts and more.

Identification

A universal credit card requires a "good" credit rating. To qualify for a universal credit card a credit score in the mid- to high-700 range is required.

Warning

When selecting a credit card it is important to consider all factors including the interest rate, annual and/or monthly fees, the grace period (which can extend up to 56 days or more for some credit cards) as well as the rewards program.
When choosing between several cards, with all factors being relatively the same, opt for the rewards program that offers greater points per dollar spent.

Resources

• Universal Credit Card Application